Rain critical for irrigators in northern Victoria and the Riverina

HAY growers across southeastern Australia are looking forward to above average rainfall and a better growing season this year after a poor 2015.

Bales of hay in the fields in summer time harvest

HAY growers across southeastern Australia are looking forward to above average rainfall and a better growing season this year after a poor 2015.

The need for rainfall is critical for the irrigators of northern Victoria and the Riverina, who are anxious to see the large reservoirs fill and the cost of irrigation water fall. The insecurity of water availability for the 20160-17 season is providing an incentive for large fodder consumers to sow oaten hay as a winter ­fodder crop this coming season.

Dairy farmers and mixed croppers between Goornong and Womboota are buying oat seed for hay crops.

As these growers have ­access to irrigation, there is some funcertainty whether they will irrigate their paddocks before sowing.

The price of temporary water is still considered by many as too costly and irrigation can alter the quality of oaten hay and eliminate some markets such as the export buyers.

Corn silage is not making the impression on the hay market that it normally does.

The insecurity of water availability and the price of lower security water shares acted as a strong disincentive for many irrigators in northern Victoria last September.

Contractors estimate the area planted to corn in 2015 is about half of the area planted in 2014.

Most of the corn has been grown by dairy farmers who have access to high security water and who intend to use their crops as corn silage for their milking cows.

But the demand for hay in the Goulburn and Murray Valley is tempered by the incoming corn silage harvest.

While corn crops sown in 2015 reached the tasselling phase in relatively mild weather, growers say they have received favourable growing conditions this season.

Most corn growers in the Riverina have completed their harvest while contractors say the harvest south of Shepparton is about half way through.

Corn silage growers who have access to low-cost high ­security water say their corn ­silage has cost them $200 a dry matter tonne ensiled on their farm.

Others who have corn ­silage for sale are asking for $230 a dry matter tonne ex farm plus freight to buyer’s farm.

This price compares favourably with the prevailing price of cereal hay of $240 a tonne delivered to Goulburn Valley buyers on an “as feed” moisture basis.

When expressed on a dry matter a tonne price, this price for cereal hay is $280 a tonne.

Growers who apply the full cost of the temporary or low security water need to attribute an additional $80 a dry matter tonne for the additional cost of irrigation water this season.